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Yara Evaluating IPO of Clean Ammonia Business

Ammonia, News, News Briefs, Scandinavia

Oslo-based Yara International ASA this week said it is evaluating a potential initial public offering (IPO) of its Yara Clean Ammonia business (YCA) on the Oslo Stock Exchange. YCA was established as a separate segment and business unit in February 2021 to focus on green and blue ammonia (GM Feb. 12, 2021). The business sourced, transported, and sold more than 4 million mt of ammonia in 2021.

As a preparatory step in the event of a potential future IPO, Yara said it will initiate an internal process to organize YCA assets, contracts, etc., into dedicated YCA entities/subsidiaries that, for now, will remain under Yara’s ownership.

“Consistent with Yara’s ownership approach, the evaluation of a potential future listing is focused on attracting minority investors and reflects Yara’s strategic ambition to enable the hydrogen economy, where clean ammonia will play a crucial role within zero-emission shipping fuels, power generation, green fertilizer production, and other industrial applications,” the company said.

ABG Sundal Collier and J.P. Morgan have been retained by Yara to advise on the evaluation of a potential IPO of YCA.

Ammonia

Ammonia, Black Sea, California, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Pacific N.W., South Africa, Southeast Asia, Tampa, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

With international ammonia cargoes and natural gas prices in Europe trending lower, sources voiced expectations of a sizeable downward move in the June Tampa ammonia contract. May prices were set at $1,425/mt CFR.

Eastern Cornbelt:

With weather delays slowly closing the preplant ammonia window, sources reported slightly softer terminal pricing in the Eastern Cornbelt in early May.

The regional ammonia range was quoted at $1,400-$1,525/st FOB, down $25-$50/st from the prior week, with the low confirmed at East Dubuque, Ill., and the high reflecting CF terminal pricing in Illinois and Indiana. Sources said most Koch terminals remained at the $1,450/st FOB level, while reference pricing FOB Lima, Ohio, was steady at the $1,475/st mark.

“We need some dry weather to finishing applying ammonia,” said one contact. “Mother Nature is not cooperating very well this year. But we did have a great fall ammonia run.”

Western Cornbelt:

Ammonia pricing reportedly dropped to $1,380-$1,450/st FOB in the Western Cornbelt, with the low reported at Fort Dodge, Iowa, and the high at Palmyra, Mo. In the Southern Plains, the Coffeyville, Kan., ammonia price was confirmed at $1,350/st FOB in early May.

California:

Anhydrous ammonia reference pricing in California was unchanged at $1,610/st DEL, with aqua ammonia posted at $412-$422/st FOB in the state.

Pacific Northwest:

Anhydrous ammonia pricing in the Pacific Northwest was quoted in the $1,495-$1,555/st DEL range in early May, with terminal prices ranging from $1,450-$1,520/st FOB, depending on location. Aqua ammonia pricing in the Pacific Northwest was pegged at the $370/st FOB mark for spring tons, down from the last reported $405/st FOB level.

Western Canada:

Spring ammonia pricing in Western Canada was unchanged at C$2,230-$2,300/mt DEL for the last reported offers.

Black Sea:

Only the ports in the southern Black Sea are receiving and sending material. The Russian blockade and mining of Ukrainian harbors is keeping ammonia from moving out, denying the market any possibility of testing prices.

The ports in Bulgaria and Turkey are far enough from the war that deliveries are able to continue. The Ontario is slated to deliver about 10,000 mt to the Black Sea Bulgarian port of Varna next week. The deal was handled by Muntajat, which is keeping the price under wraps.

Trammo is reported to be selling a cargo to a Turkish buyer at $1,100/mt CFR from an unknown supplier.

Turkish imports of ammonia for the first quarter of the year were reported at 198,000 mt by Trade Data Monitor. This represents an 18 percent drop from the 242,000 mt imported during the same period in 2021.

March 2022 imports were reported at 67,000 mt, down 38 percent from the 108,000 mt received in March 2021. Russia supplied 27,000 mt of the March material, followed by Bahrain with 19,000 mt and Libya with 15,000 mt.

India:

Large buyers in India continue to bring in product under long-term contracts with prices set on a formula basis. Smaller buyers, bringing in lower quantities, are taking tons on a spot basis, but are remaining tight-lipped about pricing.

Sources said prices may have softened to $1,050-$1,100/mt CFR, but there has been no confirmation of this new level or any new deals done at these prices.

Southeast Asia:

Sources said business in the area is just about all contract tons, with no spot deals identified this week. Talks have been taking place, but there remains a big spread in pricing ideas.

Indonesian offers are reportedly being sent out at $1,125/mt FOB, with bids coming back at $800/mt FOB. Some counters have moved the price to $1,030/mt FOB, but still without agreements.

Buyers appear in no rush to purchase tons. Sources said most buyers in the area seem to have enough ammonia to allow them to hold off on making a purchase until they finally need the tons. Sellers, on the other hand, seem to be anxious to sell their product. The shift in strength to the buyers is placing downward pressure on prices in the area.

Thailand ammonia imports for the first quarter of the year were reported at 44,000 mt by Trade Data Monitor. This represents a 44 percent drop from the 95,000 mt imported during the same period in 2021.

March ammonia imports were also down, to 18,000 mt from the 39,000 mt imported in March 2021. Reportedly, 15,000 mt of the March 2022 material came from Malaysia.

Middle East:

Producers keep claiming the ammonia price for a deal is $1,400/mt FOB, but buyers keep counterbidding at $1,000/mt FOB. The impasse leaves the price at an older level in the $1,230s/mt FOB.

Sources said the price discovery process became more complicated. A reported sale from the Arab Gulf to OCP was rumored at $1,125/mt CFR. The netback to the Arab Gulf from this price would be around $1,000/mt FOB. No producer has owned up to making this deal, however.

A sale of 10,000-12,000 mt to Agropolchim in Bulgaria has the Ontario heading to Varna by next week. No price on the sale was made public.

Producers reportedly have enough ammonia available to cover their contracts and offer some smaller lots to buyers looking to replace tons lost from the Black Sea port closures. While the lost tons cannot be fully replaced from the Arab Gulf, the product can ease concerns of the smaller buyers.

At the same time, many buyers are in no hurry to buy tons. This easy attitude is leading to downward pressure on prices in the area.

North Africa:

The Moroccan phosphate giant OCP reportedly picked up a cargo at $1,125/mt CFR. Sources said they have not been able to confirm the price, nor identify the supplier.

If the price is accurate, the estimated netback to the Arab Gulf would be about $1,000/mt FOB, down from previous business and substantially lower than producers’ expectations.

Northwest Europe:

Ammonia prices remain steady, but ready to change. Sources said calculating the European price off the $1,125/mt CFR reportedly paid by OCP would move levels to $1,400-$1,500/mt C&F. At the same time, there were reports of deals that put the price at $1,200-$1,250/mt C&F.

Until confirmation of these deals comes in, sources said the price will hold in the $1,490s/mt C&F.

Urea

Black Sea, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., Thailand, U.S. Gulf, Urea, Western Canada, Western Cornbelt

U.S. Gulf:

A perception of swollen inventories continued to weigh on the NOLA granular urea barge market, players said, while buyers largely shrugged off prior-week news of the 1.5 million mt Indian tender. Barges loading in May were reported trading in the $620-$670/st FOB range for the week, dropping from $620-$720/st FOB noted previously.

In addition to supply concerns, players noted ongoing wet weather conditions, the late start to planting in a number of areas, and increased year-over-year imports as contributing to the weak market.

Eastern Cornbelt:

Continued weakness in the NOLA urea market pressured Eastern Cornbelt terminal prices down once again. Sources quoted the market in a broad $680-$780/st FOB range in the region, down from the prior week’s $700-$825/st FOB, with both the high and low confirmed in Illinois on a spot basis. Urea pricing FOB Cincinnati, Ohio, was pegged at $725-$745/st FOB.

Western Cornbelt:

Urea pricing dropped to $680-$750/st FOB in the Western Cornbelt, down from the previous week’s $680-$790/st FOB range, with the high reported in the Iowa market at midweek. The St. Louis, Mo., urea market was quoted at $680-$710/st FOB during the week.

California:

The urea market in California was quoted at $950-$975/st FOB for bulk tons in early May, down from $960-$1,025/st FOB at last report, with the low reported at West Sacramento and the high at Stockton.

The bagged urea market FOB West Sacramento was pegged at the $1,010/st FOB level for new sales. No current rail-DEL urea prices were confirmed in the state.

Pacific Northwest:

Urea pricing ranged widely at $900-$970/st FOB in early May, down from $990-$995/st in mid-April, with the upper end reflecting the reference price FOB Rivergate, Ore. Rail-DEL offers were reported as low as $770-$820/st from Midwest shipping points.

Western Canada:

Sources reported urea pricing in a broad range at C$1,160-$1,250/mt DEL in Western Canada, down significantly from the last reported range of C$1,280-$1,350/mt DEL, with weather delays and NOLA pricing volatility cited for the drop.

On an FOB basis, Western Canada urea offers were reported at C$1,100-$1,180/mt for May, down from C$1,230-$1,345/mt FOB in mid-April. “Most retailers are selling through their position before taking on more length,” said one regional contact.

India:

The RCF urea tender closes on May 11 after a two-week waiting period from the announcement. Sources said the longer-than-usual delay was because of the EID holiday, which concluded this week.

Speculation on potential pricing was the only real activity taking place in the trading community. Sources agree RCF will most likely pay more for its urea than the $716-$750/mt CFR that IPL paid in its “mini-tender” for 78,000 mt last month. Estimates of offers start as low as $780/mt CFR and go as high as $850/mt CFR.

When RCF called the tender, it said it was looking for 1.5 million mt of urea to be awarded. Traders said under the right conditions, the Indian buying house might take 2 million mt. However, that would require a lot of parts to fall into place, not the least of which is availability of that quantity.

Sources said as things stand now, India will be short about 4.5 million mt by the end of July. This situation would require three back-to-back tenders in May and June, with each pulling in 1.5 million mt.

The big variable is sourcing the urea. Russian urea is supposed to be under sanctions because of its invasion of Ukraine. Even if India works out a way to secure Russian product, the main ports that once serviced India are in Ukraine and are currently closed.

A few small tons of Chinese urea are currently being exported, and until the end of this week, there were no indications China would release the quantities needed by India. Rumors are circulating that some traders have been picking up the small lots of urea under 10,000 mt each that the Chinese government is allowing to be shipped offshore. The purpose seems to be to build up enough tons to make an offer in the RCF tender.

However, there are now reports that China could make available 300,000–400,000 mt for export. Some traders dispute this possibility, claiming their analysis points to four or five cargoes, which would mean a maximum tonnage of 300,000 mt, but more likely 225,000 mt.

Stockpiles in China are about 32 percent below the average amount for the past five years. At the same time, Chinese production is lower than last year, when China engaged in massive exports.

The remaining sources include Vietnam, Indonesia, and the Arab Gulf. Sources said at best three cargoes might be offered from Vietnam, but only if the price is at the higher end of expectations. Indonesian suppliers made some large sales to Myanmar and the Philippines in the past few weeks, leaving fewer tons for offer to India. Sources speculated only two to three cargoes might come from there.

The last source is also the most opaque, said sources. Traders have been working to figure out how many tons Arab Gulf producers might have to offer in the tender. Unlike previous tenders, many of the producers are reportedly not talking with traders to come to agreements on backing offers into the tender. One trader was so frustrated that he was ready to tell the producers they will be on their own when the tender comes around.

Some material might also come from Nigeria and Iran. If the latter, the material will most likely be disguised as a different source.

The Indian government has stepped up its efforts to produce more local urea to avoid the high-priced imported product. Last year, the government said domestic plants produced 25.2 million mt, and imports were pegged at 9 million mt.

Already two of five new plants are operating. Two more plants are slated to start operations in December this year, and a fifth in late 2023. Even if the three plants not yet completed open on time and at 100 percent of rated capacities, the total output of the five plants will be 6.3 million mt/y. While this will reduce demand for imported urea, it will not eliminate the need.

With only two new plants already operating, India will once again have to import nearly 9 million mt to keep up with demand.

Black Sea:

The only ports operating are the ones in the southern and far eastern parts of the Black Sea. None of the ports provide enough infrastructure to make up for the loss of the Ukrainian ports, which are currently closed by Russian warships and mines.

Even without exports from the main ports, industry watchers keep calculating what the price might be if sales were to restart. The price for urea out of the area has been sliding, with the latest calculated estimate put at $660-$690/mt FOB for prilled urea.

Turkey imported 529,000 mt of urea in the first quarter of the year, according to Trade Data Monitor. This is down about 30 percent from the 757,000 mt imported during the same period of 2021. The main suppliers this year were Oman with 272,000 mt and Egypt with 125,000 mt.

March 2022 imports were reported at 190,000 mt, down 21 percent from the 240,000 mt imported during March 2021. Oman accounted for 56 percent of urea imports in March 2022 with 107,000 mt. Egypt followed with 62,000 mt, accounting for 32.5 percent of urea imports.

Indonesia:

Efforts to move up the market up to $740/mt FOB have failed, leaving the price at the $725/mt FOB settled a few weeks ago. The effort by Kaltim to move up the price came as buyers from Myanmar and the Philippines stepped into the market for some large purchases.

Tonnage available for other buyers – notably India – will be limited. Sources said a couple of cargoes might be available for the soon-to-close RCF tender. Kaltim is slated to take a turnaround this month, however, and that move will eliminate any excess product for offers into subsequent tenders.

Middle East:

Activity in the area remained quiet as the EID holiday cut into the work week and producers pulled back from talks with traders about the RCF Indian tender.

Sources said producers appear to be unwilling to commit to backing traders in the upcoming tender. One trader said he was expecting to see more direct offers from producers as a way to stem any serious price erosion.

Producers saw prices drop from $1,000/mt to the $720s/mt FOB as a result of a softening market and then IPL’s “mini-tender” for 78,000 mt. They are apparently unwilling to allow for further price drops, sources said.

Sources reported a couple of cargoes of Iranian material being shopped around at $650/mt FOB. This price is dramatically lower than the usual $10-$15/mt discount seen for Iranian product.

Egyptian producers stayed quiet throughout the EID holiday and beyond. With prices softening in the Arab Gulf and Indonesia, sources said the Egyptians appear to be waiting for the results of the Indian tender before speaking out on prices. The lack of any business means there is no way to test the assumptions that prices have fallen from the $1,130/mt FOB last achieved a few months ago. Likewise, there is no way to evaluate where the new price might be.

China:

Some pricing of the lots of 3,000-6,000 mt allowed to be exported is becoming public. Sources said the price range seems to be $680-$700/mt FOB for these small sales. This level is only slightly off from parity with the Arab Gulf, so sources said the prices sound right.

As the week closed, sources said indications were leaning to prices topping off at $740/mt FOB. Also circulating are reports that offers from China into the Indian tender could reach as high as 400,000 mt. Some traders were skeptical of this large amount, saying at best their estimates allow for 300,000 mt to be offered from China, but more likely 225,000 mt.

Green Markets analyst Alexis Maxwell reported that urea reserves in China are 32 percent lower than the average of the past five years, when exports were running high. To offer 400,000 mt would require these reserves and most of the production up to the July 5 shipping deadline set by the RCF tender.

The Chinese government remains committed to hammering down the domestic price and keeping it down. Sources said the current price is around $400/mt FOB ex-factory. Beijing, however, wants to see prices closer to $250/mt FOB ex-factory.

Clarification of the strategic reserve of urea showed that the Chinese government wanted a reserve of 1.3 million mt of urea. The initial plan appeared to involve building this reserve after the export restrictions were lifted. Now, however, it seems the urea started being put aside in February. The program is expected to be completed by June. Sources said this could mean that it might be possible for China to back sizable offers in the RCF tender, but still not with the large tonnages sent in the past.

Even if the tonnage allowed for export is increased, sources said the Chinese government will be stepping up controls over how many vessels are allowed to enter Chinese ports for fertilizer loadings. The move appears to be similar to the restrictions the government placed on vessels during the height of the COVID infection.

At that time, the number of ships were limited in each port. The crews were also subject to stringent COVID testing before being allowed to dock to load/unload their cargo. In some cases, vessels were forced to sit at anchor for at least a week, with some waiting the full two weeks for clearance.

Traders said they are already preparing for limited Chinese product to be shipped in the second semester of this year. One trader estimated exports to be only 1 million mt, which is down by almost a third. The first quarter of this year showed exports of 303,000 mt, already down 62 percent from the 802,000 mt exported in the first quarter of 2021.

Thailand:

Imports of urea in the first quarter were reported at 249,000 mt by Trade Data Monitor, down 28 percent from the 345,000 mt imported during the same period in 2021. Malaysia and Qatar each shipped about 90,000 mt in the first three months of this year, with Saudi Arabia supplying another 49,000 mt.

March imports were up 38 percent, to 138,000 mt from the 100,000 mt imported in March 2021. Saudi Arabia accounted for 36 percent of the March 2022 imports with 49,000 mt. Qatar and Malaysia came in with another 38,000 mt each.

Brazil:

Prices softened to $760-$900/mt CFR on rumors that more Chinese urea would soon be available. Reportedly, there were several bids at $700/mt CFR that went unanswered.

The expectations that more Chinese urea would be available came as sources reported China was ready to lift its restrictions on urea exports as planned at the end of May. However, the Chinese government plans to focus on building a strategic domestic reserve of 1 million mt as soon as the restrictions are lifted. This diversion of product to the domestic market, coupled with another plan to limit vessel access to Chinese ports, will keep Chinese exports limited.

Rondonópolis urea pricing was down slightly, to $900-$1,000/mt FOB ex-warehouse. The dip came in response to rumors that more Chinese urea would soon be available.

UAN

California, Eastern Cornbelt, France, Market Watch, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

U.S. Gulf:

Sources continued to describe NOLA UAN barges flat at $620-$630/st ($19.38- $19.69/unit) FOB for May-June loading.

Eastern Cornbelt:

The UAN-32 market was quoted at $660-$680/st ($20.63-$21.25/unit) FOB in the Eastern Cornbelt, depending on location, with the low at Mount Vernon, Ind. Sources continued to report the Cincinnati market at $665/st ($20.78/unit) FOB for UAN-32 and $590-$595/st ($21.07-$21.25/unit) FOB for UAN-28.

UAN-28 pricing out of Michigan terminals was pegged at the $605-$615/st ($21.61-$21.96/unit) FOB level in early May.

Western Cornbelt:

The UAN-32 market remained at $650-$675/st ($20.31-$21.07/unit) FOB in the Western Cornbelt, with the low confirmed at St. Louis. Pricing out of most Iowa terminals remained in the $665-$675/st ($20.78-$21.07/unit) FOB range in early May, depending on location.

California:

Sources reported some liquid nitrogen application taking place in early May. The UAN-32 market was quoted at $690-$700/st ($21.56-$21.88/unit) FOB Stockton, with the high end of the range reported at the $710/st ($22.19/unit) level FOB Chico. Rail-DEL pricing fell in the $710-$722/st ($22.19-$22.56/unit) range in California, depending on location.

Pacific Northwest:

The UAN-32 market was pegged at $660-$685/st ($20.63-$21.41/unit) FOB in the Pacific Northwest, with the high reflecting reference pricing at Kennewick, Wash. Delivered UAN-32 offers ranged from $680-$720/st ($21.25-$22.50/unit) in the region, depending on location and supplier.

Western Canada:

The UAN-28 market remained at a firm C$860/mt (C$30.71/unit) DEL in Western Canada in early May.

France:

Prices for UAN are reported to have fallen amid a lack of buying activity. Sources put current spot pricing levels for UAN-30 at €760-€775/mt FCA Rouen.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Pacific N.W., Thailand, Turkey, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf:

Amid a quiet week of trading, a reported $10/st drop in firm offers pushed NOLA ammonium sulfate barges to the $665-$685/st FOB range, players said, down from the week-ago $675-$695/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market was quoted in a broad range at $725-$760/st FOB in the Eastern Cornbelt, depending on location, with both the high and low confirmed at Cincinnati.

Western Cornbelt:

Ammonium sulfate pricing was pegged in a broad range at $680-$740/st FOB in the Western Cornbelt, with the high confirmed in Iowa. St. Louis pricing fell in the $680-$705/st FOB range during the week, depending on supplier.

California:

The ammonium sulfate market was quoted at $700-$715/st FOB in California, up another $15-$25/st from last report. Spot pricing in early May included $700-$705/st FOB Lathrop, $705/st FOB Woodland and Richvale, and $715/st FOB Helm.

Pacific Northwest:

Standard grade ammonium sulfate pricing remained referenced at the $620/st FOB or DEL level in the Pacific Northwest. Granular pricing ranged broadly at $670-$755/st FOB and $685-$760/st DEL, depending on supplier.

Western Canada:

The Western Canada ammonium sulfate market was pegged at C$925-$950/mt DEL for limited tons. “Truck availability is tight,” commented one source.

China:

Ammonium sulfate prices in China remained in the $320s/mt FOB. However, sources said stepped up demand from Southeast Asian and Brazilian buyers seems to be pushing suppliers to expect $340/mt FOB soon.

Turkey:

Imports of ammonium sulfate during the first quarter were reported at 509,000 mt by Trade Data Monitor. This marks a 92 percent increase over the 265,000 mt imported during the same period in 2021. China dominated the supply with 442,000 mt.

March 2022 imports were reported at 209,000 mt, up 76 percent from the 118,000 mt imported in March 2021. Chinese tons accounted for 86 percent of the March 2022 imports with 180,000 mt.

Thailand:

Ammonium sulfate imports for the first quarter of 2022 were reported at 44,000 mt by Trade Data Monitor. This represents a drop of 24 percent from the 58,000 mt imported during the same period of 2021.March 2022 imports were reported at 37,000 mt, up 37 percent from the 27,000 mt imported in March 2022.

Brazil:

Ammonium sulfate prices in Brazil held steady at $440-$460/mt CFR. Sources said they expect prices to soften as reports spread of the pending arrival of lower-priced Chinese product.Rondonópolis prices tightened slightly, to $600-$620/mt FOB ex-warehouse.

Sources reported steady demand, but nothing strong as buyers hold off on committing to purchases until they need the product.

DAP/MAP

Brazil, California, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Pacific N.W., Southeast, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida:

No price changes were reported for DAP and MAP trucks loading from Central Florida. Both products were posted at $945/st FOB, unchanged from one week earlier.

North Florida MAP trucks softened to $950/st FOB, players said, falling from $1,025/st FOB at last report.

U.S. Gulf:

NOLA phosphate barge pricing continued to drift lower for the week, players noted.

Most cited DAP barges trading down to $860-$865/st FOB, below the week-ago $880/st FOB low, while players generally noted a top closer to $870/st FOB, tumbling from the week-ago $950/st FOB high. A barge traded from Cairo was reportedly priced at an $850/st FOB NOLA-equivalent level.

With minimal trading reported for the week, MAP barge prices rolled over from the prior week’s floor of $870/st FOB, although most nearby offers were noted at higher levels. Sources generally cited an $890-$900/st FOB high for the period, declining from $940/st last week.

Limited short-term demand, fears of potential inventory spillover, and ongoing wet weather in a number of key markets contributed to the declining values, sources said.

The NOLA DAP barge price was reported at $860-$870/st FOB for the week, below $880-$950/st FOB in the prior report. MAP barges softened to the $870-$900/st FOB range, falling from $870-$940/st FOB at last report.

U.S. Exports:

With no new business reported on the Gulf export phosphate markets, last-done spot continued to be pegged at $1,240/mt FOB for both DAP and MAP cargoes.

Eastern Cornbelt:

Phosphate prices fell during the week amid softer NOLA barge values. DAP dropped to $950-$975/st FOB in the Eastern Cornbelt, down from $980-$1,010/st FOB, with both the high and low confirmed in the Illinois market. MAP was pegged at $960-$980/st FOB in the region, down from $990-$1,015/st FOB.

The Cincinnati market was quoted at $965-$970/st FOB for DAP and $960-$975/st FOB for MAP at midweek.

Western Cornbelt:

DAP pricing dropped to $945-$975/st FOB in the Western Cornbelt in early May, down from the previous week’s $975-$1,005/st FOB, with the St. Louis market quoted in the $945-$965/st FOB range. MAP was pegged at $950-$980/st FOB in the region, with St. Louis pricing reported at $955-$975/st FOB.

Southeast:

Nutrien’s postings for DAP and MAP moved to $950/st FOB Aurora, N.C., down from the previous $1,025/st FOB level, with new MAP pricing at White Springs, Fla., also reported at the $950/st FOB level.

California:

MAP remained at $1,070/st FOB or DEL in California in early May.

Pacific Northwest:

The MAP market in the Pacific Northwest was unchanged at $1,060/st FOB Aurora, Ore., $1,060/st DEL in Idaho, Utah, and Montana, and $1,050/st DEL in Washington, Oregon, and Nevada.

Western Canada:

MAP offers in Western Canada were down slightly at C$1,450-$1,535/mt FOB, depending on location, compared with a broad C$1,470-$1,570/mt FOB range in mid-April. No current delivered MAP prices were confirmed in the region during the week.

China:

Sources pegged the price of the limited tons of DAP being allowed out at $1,030-$1,050/mt FOB.

The Chinese government ordered a build-up of DAP reserves for the summer season. The final amount placed in this strategic reserve was put at 525,000 mt, instead of the earlier rumored 1 million mt. Movement of material to these reserves is expected to end by June.

Permission to export will still be up to a close inspection by customs officials, who will be monitoring price and domestic availability. The goal, said sources, remains to keep supplies high and domestic prices low.

India:

Sources said spot DAP is being offered at $1,090/mt FOB, but with no takers. The current price level at $900-$925/mt FOB reflects a much older deal. Sources said contract tons coming in are now closer to that level, but because of the nature of the deals, they are difficult to confirm.

International traders said eventually the Indian spot buyers will have to accept prices closer to $1,000/mt CFR, but for now there seems to be an impasse between buyers and sellers.

Brazil:

Sources reported MAP prices down to $1,150-$1,300/mt CFR. The downward pressure came amid reports that more Chinese MAP will soon be available. Reportedly, the product is already on vessels heading for Brazil.

Concerns were raised about the pending arrival, however. Sources said backlogs at the ports could delay the unloading and clearing of the MAP, causing problems for the end users.

Rondonópolis showed a mild correction to $1,330-$1,450/mt FOB ex-warehouse. The price is not expected to fluctuate much, as concerns continue to be raised about availability of product in the second half of the year. Sanctions against Russia and reports of China continuing to limit exports could cause a scarcity of product.

TSP

Market Watch, Triple Superphosphate, U.S. Gulf, Western Cornbelt

U.S. Gulf:

A quiet week on the NOLA TSP market left pricing unchanged from the previous $850-$860/st FOB level. “[NOLA TSP] hasn’t traded in weeks,” said one trader.

Players were divided on the market’s direction, however, with some citing nearby talks in the $825-$850/st FOB range, while others anticipated forthcoming summer fill offers in the $850-$900/st FOB range.

Western Cornbelt:

TSP pricing was reported at $885-$905/st FOB in the Western Cornbelt, depending on location, reflecting a drop of $20/st at the top of the range.

Phosphoric Acid

California, Eastern Cornbelt, India, Market Watch, Pacific N.W., Phosphoric Acid, Western Cornbelt

Eastern Cornbelt:

May pricing for phos acid remained at the $17.50/unit rail-DEL level in the Eastern Cornbelt.

Western Cornbelt:

Phos acid prices were steady at $17.50/unit rail-DEL in the Western Cornbelt for May tons.

California:

May pricing for phos acid was quoted at $17.50/unit rail-DEL in California, unchanged from April, with MGA referenced at $17.70/unit FOB Lathrop.

Pacific Northwest:

Thephos acid market for May was unchanged at $17.00/unit FOB Pocatello, Idaho, and $17.50/unit rail-DEL in the Pacific Northwest.

India:

Sources continued to peg the most recent India phosphoric acid contract at $1,530/mt P2O5 CFR, up $200/mt from the prior $1,330/mt P2O5 CFR agreement. Increased values are expected in the next round of contracting.